ISRAEL'S AUDITOR AS POLICY-MAKER

Supreme audit institutions claim to avoid directly criticizing government policy. However, their assertions do not reflect reality. Israel's State Comptroller is explicit in criticizing government policy, and suggesting other policies in their place. The US General Accounting Office, the UK National Audit Office, and the Philippines Commission on Audit also criticize policy, but with styles that are more subtle and indirect than the Israeli auditor's. A review of the responses to Israel's audit reports reveals the extent of policy influence and the constraints that limit the auditor's role as a policy-maker.     

An Integrated Model for the Audit,Control and Supervision of Local Government

This article considers the issue of the audit, control and supervision of local government units in a new paradigm. The author argues that the treatment of audit, control and supervision activities in the present paradigm, in which they are treated separately from each other, or only as a ‘control or audit pyramid’, has so many imperfections that it no longer represents a reliable means of modern good governance. The author presents some ideas for the operation of an integrated system of audit, control and supervision for the local government sector, focusing particularly on small, local government units. Although the author's research is based on the case of Estonia, a small, liberal constitutional democracy with an open economy, his ideas are also applicable to other democratic societies.     

Audit Committees and Accountability in Local Government: A National Survey

Abstract

Financial scandals in city governments have received increased publicity in recent years. Audit committees have been suggested as a way review and improve standards and procedures for financial accountability. Audit committees assist local government managers in overseeing and monitoring the financial accounting and auditing process. They provide a communication link between elected officials, municipal managers, and independent auditors. This study relies on national survey data to examine the prevalence, role, and composition of audit committees in cities with populations over 65,000 and the conditions affecting their use and effectiveness. Interviews and a brief case study supplement survey data to provide richer detail regarding the performance of audit committees in ensuring improved accountability.     

Cultural Resistance,Output Measures,and Audit Practice: Impact on Non-Implementation of Program-Based Budgeting in Nigeria

Excessive spending on recurrent expenditure hampers economic growth. A program-based budgeting approach has been proposed to discipline fiscal excesses of agencies outside direct civil service machinery but government is inactive. This study hypothesized that difficulty in securing output measures, resistance from politicians, agency heads, and workers; current audit practice; and cost–benefit considerations, hinder implementation. Analysis of perceptual data reveals that resistance from politicians and employees is the major factor that hinders implementation of a program-based budgeting in Nigeria. In addition, difficulty in securing measures to quantify outputs thwarts implementation initiatives, and current audit practice whereby private audit firms audit operational activities of agencies only at year-end subvert program reviews. The study recommends that politicians be advised on political considerations in budgetary allocation; a performance measurement committee be set up to develop measures of outputs acceptable to workers; and a body of auditors be nationalized to undertake audit of government agencies.     

A working model to help institutionalize quality improvements in local governments

This article describes a working model designed to help leadership in public management introduce quality improvements and eventually facilitate transformations to quality organizations (TQO). By quality improvements and transformations to quality organizations -- whether in government, public education, public health, or other fields of activity -- we mean those institutional changes which reliably achieve ever greater effectiveness in accomplishing mission and responsively achieve ever higher levels of measurable service to public “customers.”

This article discusses the development of an organizational assessment instrument which the authors designed for the County of Los Angeles. Building on the Malcolm Baldrige National Quality Award and the President's Award in the USA, as well as on the review of other state and local criteria and comments received through a national review process, the authors formulated criteria of quality management with a view toward public service customers, particularly at local levels of government.

The model described has been initially applied to conduct self-assessments in four departments of Los Angeles County. It is also intended for broader use by administrative practitioners and scholars interested in the organizational change process. This article reports the development of the working model and identifies some lessons learned. The purpose of this article is threefold: (1) to inform about quality developments in the County of Los Angeles, (2) to present the working model as a point of departure for dialogue about the role which quality criteria might play in strengthening local governments more broadly, and (3) to consider the working model's possible use in facilitating shared mutual learning across geographic and other boundaries electronically.     

The growing challenges of providing pensions to state and local civil servants in an aging society

Much hope has been placed in the ability of Supreme Audit Institutions (SAIs) to enhance public accountability. SAIs' independence and professionalism lend promise to the chance that they might succeed where program budgeting, program evaluation, performance measurement and strengthened legislative oversight have failed. Little attention has been paid in the literature to political and organizational constraints on the ability of SAIs to enhance public accountability. The article examines the contribution of Israel's State Comptroller to enhanced accountability across three measures: audit coverage; type of audit coverage; and use of audit reports by the Knesset (Israel's parliament). Programs connected with crisis situations, large programs and direct provision programs are found to receive significantly more audit attention. The Comptroller conducted few audits of program effectiveness. The few reports used by the Knesset were almost all connected with crisis situations. Exploration of the reasons for these patterns reveals that: organizational politics considerations limit the willingness of state auditors to conduct effectiveness audits and relate to controversial issues; logistical and political considerations of Members of Knesset limit their interest in using audit reports; and the paucity of audit resources relative to the scope of government means that much activity is not scrutinized.     

Understanding the Local Government Review: A Retrospective Analysis

Reorganizations have provided fertile ground for researchers and practitioners seeking to draw lessons about the nature of public administration. The review leading to the reorganization of British local government in 1991-96 sustains the tradition. In an extraordinary unfolding of events key features of the policy and political system are laid bare. This article provides a background analysis of the review, examines the main turning points in the process, assesses the performance of key players and concludes with a judgement about the sustainability of the settlement that ultimately emerged. A number of lessons are drawn about the nature of the British political system as revealed through the impact of the challenge of a large-scale structural review of local government.     

Another path to customs reform: Mexico's second inspection

This paper presents two theses about reforming customs administration in developing countries. First, that modern customs systems increasingly rely on documentary audit rather than physical control and that the private sector can improve the information needed to strengthen audit. Second, that reform of customs administration in developing countries requires building both accountability and efficiency. The widespread use of Pre-Shipment Inspection (PSI) services by developing countries and Mexico's innovative privatized second inspection supports the first thesis and Mexico's experience with privatizing a key layer of its customs administration supports the second thesis.

This paper examines Mexico's recently introduced Second Customs Inspection which is a novel approach of using private firms to improve the accountability of a customs system. The Second Inspection is uniquely poised to improve both physical control and documentary audit in Mexico's customs by clearly defining the inspection as “rough justice.” “Rough justice"” is an approach to physical customs inspection that recognizes the limitations oftime and space of customs inspections prior to detailed documentary audit. Rough justice is an approach to customs administration that promotes systematic but selective review of contents and documents in the front end of the customs process (inspection) that can be done within reasonable time limits that do not unduly delay trade.     

DEVELOPING STATE AUDIT IN BRITAIN

This paper discusses the development of the British state audit system exercised by the Public Accounts Committee (PAC), the Comptroller and Auditor General (CAG) and the National Audit Office (NAO). It briefly describes the concerns which led to a campaign for reforming our audit arrangements and to the passing of the National Audit Act in 1983 and considers ways in which that Act could be used to increase the effectiveness of parliamentary and public accountability of central government in the light of new developments in the management of departments.     

Determinants of Government Effectiveness

The direct relationship between government effectiveness and the population's well-being has generated a growing interest about the explanatory factors of governance quality. Thus, the aim of this study is to determine the determinants of government effectiveness, in relation to the organizational environment and political and internal characteristics of public administrations. For this, we used a sample composed by 202 countries observed between 2002 and 2008. A World Bank governance indicator represents the government effectiveness. We estimated a panel data dependence model by the Generalized Method of Moments estimator to avoid heterogeneity and endogeneity problems. Furthermore, a CHAID algorithm provides a classification of governance quality according to the predicted determinants.

The results show that government effectiveness is initially explained by the organizational environment, related to economic development and educational status. Later, and according to countries’ income distribution, political constrains and some organizational characteristics, such as gender diversity and government size, may improve governance quality.     

Value-For-Money Audit for Accountability and Performance Management in Local Government in Ghana

Public sector organizations, including local government (LG) entities, continue to resort to value for money (VFM) audit to enhance performance and accountability. Based on the analysis of the consolidated reports on the annual performance-based Functional Organizational Assessment Tool (FOAT)—VFM audit—in Ghana to determine the efficacy of VFM on performance, this article argues that VFM audits constitute a significant public management tool that could enhance LG performance. However, the FOAT reports, like most VFM audits, only provide quantitative evidence, which fails to capture the qualitative or other relevant explanatory factors behind the recorded performance improvement.     

The role of government in economic development: the chinese experience

This study examines the role of government in China's economic reform and development years. The study first provides a literature review about major functions government played in the modern economic system and the importance of government policies to economic development. It then evaluates the experience of the Chinese government in the process of reform and development by focusing on five major roles: (a) promoter of growth, (b) manager of economy, (c) distributor of income, (d) regulator of industry, and (e) protector of citizen and business. The implications of the Chinese experience are discussed.     

American Views About Public Services: A Challenging Paradox for Public Administrators

This review of public opinion about the role of government in the United States finds a perhaps surprising combination of conservative and liberal beliefs. For example, while they are strongly supportive of tax cuts, Americans also want more government activism in a wide variety of areas. This certainly presents a challenge for public administrators and government since the means for fulfilling these desires of the citizens are far from readily apparent.     

GOVERNANCE AND ECONOMIC DEVELOPMENT: CHANGES AND CHALLENGES

This paper examines the issue of governance in the process of economic development. The paper first provides a literature review on the various arguments regarding the role of government in promoting economic development and the major issues emphasized in recent government reform projects. The paper then focuses on three major policy changes and reforms that are related to the area of governance and economic development: (1) regulatory reform, (2) privatization policy, and (3) decentralization policy. The paper concludes with discussions about the continuing arguments about the role of government, the increasing importance of local governments, and the contribution of nongovernmental or nonprofit organizations in economic development.     

Reduction in Force—Benefit or Detriment? A Look at Some Tangible and Intangible Results of Federal Sector Reductions in Force (RIF)

Abstract

Through a review of some of the tangible and intangible results of Federal reduction in force (RIF), this article demonstrates that while the use of RIF procedures has resulted in a smaller Federal civilian workforce, it is a cumbersome and expensive process which negatively impacts the reputation of the Federal government as an employer. At one time, the Federal government was a model, progressive employer. Repeated RIFs have made the government a less desirable employer. This is an important loss, not only to Federal employees, but to the entire American workplace. If government cannot attract and retain a quality workforce in a stable environment, then critical programs cannot help but be negatively impacted.     

THE DYNAMICS OF PROFESSIONS AND DEVELOPMENT OF NEW ROLES IN PUBLIC SERVICES ORGANIZATIONS: THE CASE OF MODERN MATRONS IN THE ENGLISH NHS

This study contributes to research examining how professional autonomy and hierarchy impacts upon the implementation of policy designed to improve the quality of public services delivery through the introduction of new managerial roles. It is based on an empirical examination of a new role for nurses – modern matrons – who are expected by policy-makers to drive organizational change aimed at tackling health care acquired infections (HCAI) in the National Health Service (NHS) within England. First, we show that the changing role of nurses associated with their ongoing professionalization limits the influence of modern matrons over their own ranks in tackling HCAI. Second, the influence of modern matrons over doctors is limited. Third, government policy itself appears inconsistent in its support for the role of modern matrons. The attempts of modern matrons to tackle HCAI appear more effective where infection control activity is situated in professional practice and where modern matrons integrate aspirations for improved infection control within mainstream audit mechanisms in a health care organization.     

Public services and local government: the end of the principle of ‘funding following duties’

Recent attention to local government finance in England has focused on the substantial cuts in grant funding during the 2010–15 Parliament. However, the newly introduced Business Rates Retention Scheme, which links the distribution of central funding to business rate revenue raised in each local area, constitutes a historically significant disjuncture in the funding of English local authorities. Since the nineteenth century, with the exception of one short period, funding of English local government has followed statutory duties set by Parliament, a principle which underlay a variety of central control and audit regimes throughout the twentieth century. The new system breaks that link, implying a rejection of responsibility for local services by central government. This plays into demands for greater ‘autonomy’ currently emanating from local authorities, but this may not be a panacea for the stretched financial situation that many of them are experiencing at present.     

The Politics of Local Government Reform in Northern Ireland

A major review of public administration in Northern Ireland has resulted in proposals for radical reforms in health, education and local government services. Although originating from the devolved government of 1999, intermittent suspensions resulted in Direct Rule Ministers taking over responsibility for the review. This article traces the influence of a sizeable body of research evidence on the outcomes of the review, specifically controversial reforms to local government, and the significant influence attached to macro political factors in reaching key public policy decisions. It also highlights the asymmetry in power relations between Stormont and local government and how devolution has simply compounded regional centralism in Northern Ireland.     

Assessing Member States' Management of Eu Finances: an Empirical Analysis of the Annual Reports of the European Court of Auditors, 1996–2001

The aim of this article is to gain some understanding of the way the European Court of Auditors (ECA) assesses European Union (EU) member states' performances in managing EU finances. To this end the ECA's annual reports for 1996–2001 have been analysed.
We find that the information provided in the ECA annual reports is somewhat unsystematic, which is the result of the ECA's approach to auditing and its working methods. A review of the literature, as well as our own empirical analysis, allows us to conclude that the ECA does not in fact live up to its own mission of providing relevant, objective reports. Our analysis suggests, for instance, that there is some ambiguity within the ECA due to differences in audit traditions within the EU. Improvements could be made by reducing the number of ECA members to three or five, by (further) integrating the traditional ECA audit and the audit within the framework of the statement of assurance, and by further integrating internal and external budgetary control within the EU.     

‘RENEWING DEFRA’: EXPLORING THE EMERGENCE OF RISK‐BASED POLICYMAKING IN UK CENTRAL GOVERNMENT

Risk‐based policymaking is a form of reflexive policymaking that uses risk analysis to address both the primary objects of policy interventions and their secondary adverse consequences. As such, it has become central to debates about efficiency, control and accountability in UK government. To better understand the factors shaping its emergence, this article studies the UK Department for Environment, Food and Rural Affairs' (Defra) adoption of risk‐based policymaking. In‐depth interviews with Defra staff suggest that risk‐based policymaking serves conflicting objectives and struggles to perform its ostensive functions. The article concludes, first, that risk understandings can be organizationally filtered in ways that reinforce rather than challenge entrenched policy practices. Second, that using risk‐based policymaking for audit purposes can undermine policymaking reflexivity. Third, that the value of risk ideas in reconciling competing accountability and blame‐avoidance pressures leads to risk ‘colonizing’ increasing dimensions of policymaking.